VANCOUVER (miningweekly.com) – Canadian base metals producer Hudbay Minerals will offer $1-billion total principal amount in two series of senior notes offerings, including senior notes due in 2023 and a series of senior notes due in 2025.
The total principal amount, interest rate and other terms of each series of the new notes will be determined at pricing and are dependent upon market conditions and other factors, the NYSE- and TSX-listed miner said Monday.
Hudbay also announced that it will buy back all its outstanding $920-million total principal amount of 9.5% senior notes due in 2020. The tender offer is scheduled to expire at midnight Eastern Time on December 23.
Subject to terms and conditions of the tender offer, validly tendered notes at the early tender time of 17:00 Eastern Time on December 9 will receive $1 052.50 including a $30 early tender premium for each $1 000 principal amount tendered.
Notes tendered after the early tender time will receive $1 022.50 per $1 000 principal amount tendered.
Hudbay also announced Monday that, regarding the offering, one of its lenders has agreed to increase its commitment under Hudbay's senior secured revolving credit facilities by $20-million, pending completing the offering of the new notes. This will lift Hudbay's committed senior secured revolving credit facilities to $550-million, improving the company's liquidity.